As of: 11/01/2022 6:56 p.m
The energy crisis is having a negative impact on Germany as a business location. The expensive gas makes industrial companies think loudly about emigration. In this situation, BASF is expanding its site in Schwarzheide, Brandenburg.
When Olaf Scholz appeared in front of the press in Schwarzheide in southern Brandenburg, he made one thing clear: now the Economic Chancellor is speaking. “I think it’s nice here,” says Scholz, with a gray and white industrial backdrop behind him. “There are different attitudes towards industry. I think industry is part of the culture and the way we live in Germany.”
Of course, industry bosses like to hear such words. BASF boss Martin Brudermüller is standing next to Scholz and looks satisfied. He emphasizes several times that he is very happy that the Chancellor is stopping by. In return, he promises that the company will operate a plant in Schwarzheide that is in line with the political goals of the federal government: geared towards electrification and decarbonization – and with well-paid industrial jobs: “At this location, we have an ideal constellation to show that transformation in Germany,” says Brudermüller.
“An absolute exception”
Schwarzheide is something of a flagship plant for BASF. So far, plastics, paints and pesticides have been manufactured here. Battery precursors are now to be added. A cathode parts factory is to follow at the end of the year, followed by a recycling plant: everything for electromobility. A new solar park with a maximum output of 24 megawatts is already there.
“Nice here”: Chancellor Olaf Scholz (left) and BASF boss Martin Brudermüller on the factory premises in Schwarzheide.
Image: EPA
A stroke of luck for little Schwarzheide. Exactly 5555 inhabitants live here, the factory is about the same size as the city. Around 2000 people work here. With the expansion, more will be added. Mayor Christoph Schmidt is aware of the special situation: “We are currently an absolute exception.” The city is fully confident that this development will continue and wants to open a training center “where we then want to train specialists for the future in the most modern conditions.”
Alert on churn trend
But in view of the high energy prices in Germany, some see the future of Germany as an industrial location threatened. Also at BASF. However, the group intends to continue investing in China. The industrial union IGBCE is already talking about an incipient emigration trend.
Chancellor Scholz also briefly addresses the critical situation, but immediately comes to the main goal: to make Germany CO2-neutral as an industrial location – without losing jobs. “In 2045 we want to continue to be one of the very large, important industrial countries in the world.” By then, wind and solar will be expanded, hydrogen will serve as a storage medium for electricity and electromobility will be the standard – and Schwarzheide will show that this future is possible: “We have set ourselves all that. And you can see it here,” says Scholz.
Increasing power consumption for new technologies
BASF boss Brudermüller is also confident in Schwarzheide. He also sees the plant as exemplary: “We have turned it into a modern chemical site that is on its way into the future.” But all this not only costs money, but also energy. “We will need significantly more electricity in the future,” says Brudermüller. He does not emphasize that this is very expensive in Germany.
Chancellor Scholz wants to travel to China on a state visit on Friday. Also on board: BASF CEO Brudermüller.